Hi
I would like to ask about the calculation in this trade. I bought Netflix 1 stock at 364,12 , 2 stock at 363,36 and 4 stock at 349,27. the median should be around 355,417. But I already reach that mark but it keeps telling me that I’m in a negative trade. So tried to sell 3 of them and discover that I did 20 € minus with that deal?
What’s wrong?
Check usd/eur conversion rate when buying, then compare with one from selling.
But how do I end up about -20€ if I’m selling right at this mark 355,41???
And you can also clearly see that I’m above the median and somehow I’m still in a negative zone???
I had 5% loss on GBP invest week ago, because just after I bought GBP stock USD skyrocketed. Even tho price in GBP was 2-3% up from my purchase price.
So go to purchase history and check buy fx rate, compare with sell fx rate.
@Ducdopamin1 This is currency (FX) risk. When using € to purchase denominated stocks, you're exchanging € for .
During the time you hold an investment, in your case - Netflix, should the $ devalue against €, you’re losing money even if the stock’s going nowhere.
Example:
Day 1: You need $300 to buy Netflix. Let’s say that’s €200 at the “Day 1” exchange rate - 1.5.
Day 7: You decide to sell your Netflix stock which is now worth $310. However, let’s imagine the exchange rate is now 1.75.
- $310 / 1.75 = €177.14.
- €177.14 - €200 = -€22.86 even though Netflix has gone up in price. This is because of the $ that you bought to purchase Netflix got depreciated.
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Alright now I understand it :/.
Thanks for the explanation.
One of the reasons why I decided to open an account in USD. It makes less problematic, as I know upfront how much I’m converting from my currency to USD and vice-versa.
Hello, is it possible to open a multicurrency account?
No, but it has been suggested already.
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not yet. the feature has been suggested and will be looked at in the 2nd half of this year. whether it does get added is unknown at this time and wouldn’t be earlier than the start of next year.
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